Emarsys has released the 2024 Global Customer Loyalty Index examining where traditional loyalty strategies are being challenged by evolving consumer preferences and behaviors. Here are 5 key takeaways:

1. Delivering Experience-Driven Loyalty

• 20% of consumers consider memorable experiences a significant factor in their loyalty decisions
  

• 53% of customers switch brands after poor experiences
  

So what?

To effectively deliver experience-driven loyalty, focus on creating memorable interactions that resonate with customers across every touchpoint. Consider the importance of investing in unique, value-driven interactions, from personalized communications to exclusive offerings that leave a lasting impression.

Bottom line: Prioritize experience and value to maintain quality across the customer journey in these important areas.

2. Shifting from Incentivized to Ethical Loyalty

• Incentivized loyalty has dropped from 58% in 2022 to 48% in 2024
  

• True Loyalty and Ethical Loyalty have both increased by 2% since 2022
  

• 21% of customers are motivated by ethical practices to become loyal to a brand
  

So what?

Brands that align their values with what customers care about, from sustainability to other ethical considerations, have an opportunity to stand out and create more meaningful connections with their customers. Clearly communicating these brand values is vital for customers to know where you stand on key issues like sustainability and social causes.

Bottom line: Pivot
from purely transactional
loyalty programs
to those that
emphasize shared
values and genuine connections with consumers to create experiences that resonate.

3. Embracing Emerging Loyalty Channels

• 65% of customers make purchases primarily on mobile apps
  

• 69% of consumers will use an app more often because of
  rewards and incentives
  

• 49% of customers will use an app more often because of
  personalized messages
  

So what?

Ensure user-friendly navigation and take advantage of an added touchpoint to deliver more personalized value to customers with mobile apps. There is also a growing number of customers willing to pay a subscription with brands that offer exclusive benefits and personalized offers. When considering if a paid subscription model is right for your brand, keep customer needs and feedback in mind to deliver value that resonates with this exclusive tier.

Bottom line: Stay focused on creating a seamless experience across all channels. Your customers should feel like they're getting the same great experience whether they're on their phone, their laptop, or in your store.

4. Bridging the Generational Loyalty Gap

• Older generations have 10% higher levels of loyalty compared to younger generations
  

• Only 34% of Baby Boomers use mobile apps for shopping compared to 44% of Millennials and Gen Z
  

• 45% of Gen Z consumers have switched brands due to sustainability practices
  

So what?

Brands that tailor campaigns and omnichannel experiences to resonate with different age groups, addressing the differences in what drives loyalty for each, will create more meaningful relationships with customers across the generations.

Bottom line: Develop
targeted campaigns
that speak to
the values and
preferences of
younger consumers while maintaining connections with older generations in their preferred channels.

5. Leveraging Sector-Specific Insights

• Clothing & Fashion has remained the top sector for loyalty with over 50% of consumers saying they’re loyal to a retailer in that industry.
  

• Food Delivery and Beauty & Skincare have seen significant increases in customer loyalty, gaining 11% and 9% respectively in 2024.
  

So what?

Brands that adapt and apply strategies from thriving industries in loyalty create new ways to engage their customers, find opportunities to maximize business results, and stand out from competitors.

Bottom line: Analyze what drives loyalty in your industry and adapt your strategies accordingly. Tailor initiatives and campaigns to your industry and consider partnerships that enhance value propositions within your sector, creating unique offerings that attract loyal customers.

BONUS Takeaway:
The native integration between Annex Cloud and Emarsys makes it easier than ever to deliver loyalty across all touchpoints, taking the guesswork out of building customer journeys with our built-in tactics. By leveraging loyalty data to automate marketing and feed personalization engines, you can significantly enhance the customer experience.

So What? Transform your loyalty strategy with agility at its core to adapt swiftly to new consumer preferences and market shifts supported by cloud-based loyalty program management, like Annex Cloud.

Ready to dive deeper? Download the full Emarsys Report and start your journey towards building lasting, meaningful customer loyalty.